PROJECT

Unit 8 QUALITY
MANAGEMENT
“ It’s not enough to make sure you get project done
On time and Under budget “
 What is Quality?

• Quality is conformance to requirements (Ph.Crosby)

• Quality is fitness for use ( Joseph Juran )

• Quality is continuous improvement through reduced

variation (Deming).
 QUALITY IS :

A ) Meeting and exceeding the customer’s expectations.

B ) Adding extras to make the customer happy.

C ) The degree to which the project meets requirements.

D ) Conformance to management’s requirements.

WHEN A PRODUCT OR SERVICE
COMPLETELY MEETS A CUSTOMER’S
REQUIREMENTS :

A ) Quality is achieved.

B ) The cost of quality is high.

C ) The cost of quality is low.

D ) The customer pays the minimum price.

Modern Quality Modern quality management complements project
management. Both recognize the importance of:
 Customer satisfaction ( Customers & Team ) , Stakeholder’s
 Understanding, evaluating, defining, and managing expectations
so that customer requirements are met
( conformance to requirements & fitness for use )

 Prevention over inspection

 The cost of preventing mistakes is generally much less than the
cost of correcting them
(quality is planned, designed, and built in not inspected in)

 Continuous improvement (Kaizen)

 Alter (Kai) and Improve (Zen)
 TQM and Six Sigma, should improve the quality of the project’s
management as well as the quality of the project’s product.
( plan-do-check-act ) cycle
 Management responsibility
( responsibility of management to provide the resources
needed to succeed )
 WHEN PROJECT MANGER STOP
QUALITY IMPROVEMENT
ACTIVITIES ?
You have to make Marginal Analysis :
Looking for the point where the benefits
or Revenue to be received from
improving quality equal the incremental
cost to achieve that quality

Do you have a quality system when using

JIT Just In Time ?
A company using JIT must
have high quality practices
Quality vs. Grade
• Quality is the degree to which a set of inherent
characteristics fulfill requirements

• Grade is a category assigned to products or

services having the same functional use but different
technical characteristics

( while failing to meet quality requirements is

always a problem, low grade may not be)

•Project manager and project management team are

responsible for determining and delivering the
required level of both Quality and Grade
Accuracy vs. Precision
• Accuracy The measured value is very close to the
true value .

High accuracy
Low precision

• Precision The value of repeated measurements

are clustered and have little scatter
High precision
Low accuracy
Impact of poor Quality
• Increased Costs
• Low moral
• Low customer satisfaction
• Increased Risk
• Rework
• Schedule Delay
 Project Quality Management
 Includes the processes and activities of the performing organization that determine

quality policies, objectives, and responsibilities so that the project will satisfy the

needs for which it was undertaken.

 It implements the quality management system through policy and procedures with

continuous process improvement activities conducted throughout, as appropriate.

QA QA QA

QA QA
QC QC
QC
QA
D D D

Project Life Time

Product
 Quality Management Processes

 Plan Quality
 Identifying quality requirements and/or standards

for the project and product.

 Perform Quality Assurance

 Auditing the quality requirements and the results from

quality control measurements to ensure appropriate

quality standards

 Perform Quality Control

 Monitoring and recording results of executing the

quality activities to assess performance and recommend

necessary changes.
11
12
“ When it comes to Defects , Prevention is always better
than Inspected ”

8.1 Plan Quality

•Process of identifying quality requirements and/or standards
for the project and product.

•Quality planning should be performed in parallel with other

project planning processes.

• Quality is planned in – not inspected in

8.1 Plan Quality
8.1 Plan Quality : Inputs
1. Scope Baseline : Scope statement , WBS , Dictionary .

2. Stakeholder Register : Stakeholder interest or impact on quality

3. Cost Performance Baseline : Accepted cost performance

4. Schedule Baseline : Accepted Schedule performance

5. Risk Register : Threats / opportunities that impact quality requirement

6. Requirement Documentation

7. E. Environmental Factors : Rules, standard , Governmental regulation

8. O. Process Assets : Quality Policy , Procedure , Lessons Learned

 8.1 Plan Quality Tools & Techniques
1. Cost-Benefit Analysis
 The primary benefits of meeting quality
requirements can include :
• Less rework,
• Higher productivity,
• Lower costs
• Increased stakeholder satisfaction.

A business case for each quality activity compares the cost of

the quality step to the expected benefit.
 8.1 Plan Quality Tools & Techniques
2. Cost of Quality
All costs incurred over the life of the
product by investment in Preventing
nonconformance to requirement,
Appraising the product or service for
conformance to requirement, and failing to
meet requirements (Rework).

• Failure costs are often categorized into

• Internal (found by the project)
• External (found by the customer).

•Failure costs are also called Cost of Poor

Quality.
 8.1 Plan Quality Tools & Techniques
2. Cost of Quality

Cost of Conformance Cost of Non-conformance

Good Quality Poor Quality
( Money spent during the project to avoid ( Money spend during and after the project
Failures ) because of failures )

To avoid failures Because of failures

 Prevention Costs  Internal Failure Costs
( Build a quality product) ( Failure found by the project)
. Training . Rework
. Document processes . Scrap
. Equipment
. Time to do it right  External Failure Costs
 Appraisal Costs ( Failure found by the customer)
(Assess the quality) . Liabilities
. Testing . Lost business
. Testing Destructive Loss . Warranty work
. Inspections
 8.1 Plan Quality Tools & Techniques
3. Control Charts Graphic display of results over a period of time
to determine if a process is in control ( Stable ) :

Contract Or Tolerance
PM
Actual
 8.1 Plan Quality Tools & Techniques
3. Control Charts
Rule of 7 Seven or more consecutive points on the same side of the Mean
indicates a need to investigate, regardless if they fall within the control limits
Defects Found

Inspection Number

Process Out
of control
A CONTROL CHART SHOWS THAT THE LAST
EIGHT PIPES PRODUCED WERE ALL LESS THAN
AVERAGE WEIGHT. YOU NEED TO INFORM
MANAGEMENT THAT THERE IS A PROBLEM
BECAUSE THE SITUATION VIOLATES THE :

A ) Rule of seven.

B ) Rule of eight .

C ) 50/50 rule.

D ) 3 sigma rule.
 8.1 Plan Quality Tools & Techniques
4. Benchmarking
Involves comparing actual or planned
project practices to those of comparable
projects in order to:

• Generate ideas for improvement .

• Provide a standard by which to measure
performance .

•Can be done within the organization or with other organizations

which have similar processes
STANDARD DEVIATION AND SIGMA
VALUES
Standard deviation is used to measure how data is organized.
we should know the basic standard deviation formula, the
concept of standard deviation and what it's used for, and the
four sigma values for normally distributed data.
Standard deviation formula is the result of the optimistic
estimate subtracted from the pessimistic, divided by six:
= (Pessimistic Estimate - Optimistic Estimate) / 6

1 sigma -- 68.25%
2 sigma -- 95.46%
3 sigma -- 99.73%
6 sigma -- 99.99%
 8.1 Plan Quality
Tools & Techniques
5. Statistical Sampling
• Statistical sampling involves choosing part of a
population of interest for inspection. Sample
frequency and sizes should be determined during
the plan quality process so the cost of quality will
include the number of tests, expected scrap.

•Ex : Selecting ten engineering drawings at random

from a list of seventy fine
8.1 Plan Quality Tools &
Techniques
6. Design of Experiments ( Test Planning )

•Statistical method for identifying which factors

may influence specific variables of a product or
process under development or in production.

•Determine the number and quantity of test and

their impact on cost of quality

•Analysis of experimental data should provide the

optimal conditions for the product or process

For example,
Automotive designers use this technique to determine which
combination of suspension and tires will produce the most
desirable ride characteristics at a reasonable cost.
8.1 Plan Quality Tools &
7. Flowcharting
Techniques
•The flowchart is a graphical representation of a process showing the
relationship among process steps .

•Shows activities, decision

points, and the order of processing

• Helps to analyze how problems occur

•Can help the project team anticipate

what and where quality problems
might occur and thus help
develop approaches for
dealing with them.
 8.1 Plan Quality: Outputs
1. Quality Management Plan “ Gives you what you need to manage quality “
• Describes how the project management team implements the
performing organization's quality policy.
• Provides input to the overall project management plan and must
address quality control (QC), quality assurance (QA), and continuous
process improvement for the project.

2. Quality Checklists
A Checklist is a structured tool, used to verify that a set of required steps has
been performed and items to inspect.

“ Quality management plan is the main tools for

preventing defects on you project “
 8.1 Plan Quality: Outputs
3. Quality Metrics
• An operational definition that describes in very specific terms what
something is and how the quality control process measures it.

• For example, a metric related to the quality objective of staying within

the approved budget by ± 10%.

4. Project document updates

• Stakeholder Register

• Responsibility Assignment Matrix

 8.1 Plan Quality: Outputs
5. Process Improvement Plan
Details the steps of analyzing processes that facilitate the identification of
waste and non-value added activity.
Areas to consider include:
• Process boundaries
Which describe the purpose, start, and end of processes,
their inputs and outputs, data required, and the owner and
stakeholder of the processes
• Process configuration
Flowchart of processes to facilitate analysis with interfaces
identified
• Process metrics
Maintain control over status of processes
• Targets for improved performance
Guides the process improvement activities
 FIVE OF THE SEVEN PHASES ON THE PROJECT
CONTAIN WORK THAT IS SUBSTANTIALLY
SIMILAR. WHAT MUST THE PROJECT MANAGER
DO?
A ) See what can be done to make sure the work is carefully reworded to
remove similarity.

B ) Make sure the same resource completes all the similar work packages.

C ) Plan in continuous improvement activities.

D ) Make sure the first and last of these work packages is scheduled close
in time to each other.
 8.2 Perform Quality Assurance

• The process of Auditing the quality requirements and

the results from Quality control measurements to
ensure appropriate quality standards and operational
definitions are used.

• A quality assurance department, or similar organization,

often oversees quality assurance activities.

• Quality Assurance provides an umbrella for

continuous process improvement, which is an
iterative means for improving the quality of all
processes.
8.2 Perform Quality Assurance
8.2 Perform Quality Assurance: Inputs
1. Project Management Plan
 Quality Management Plan
 Process Improvement Plan

2. Quality Metrics ( Quality Planning )

3. Work Performance information

 Project deliverable status
 Schedule Progress
 Technical performance measure
 Costs Incurred

4. Quality Control Measurements

 Are the results of quality control activities.
8.2 Perform Quality Assurance Tools & Techniques
1. Plan Quality & Perform Quality Control Tools & Techniques

2. Quality Audits
A Quality Audit is a structured, independent review to
determine whether project activities comply with the
organizational and project policies, processes, and
procedures.

• The objective of a quality audit

• Identify good/best practice being implemented
• Identify Gaps /shortcoming
• Proactively offer assistance to improve implementation
of the processes

•Quality audits confirm the implementation of

approved change requests, corrective actions,
defect repairs, and preventive action
8.2 Perform Quality Assurance Tools & Techniques
3. Process Analysis
Follows the steps outlined in the process improvement
plan to identify needed improvements from an
organizational and technical standpoint.

•Examines problems experienced, constraints

experienced, and non-value added activities identified
during process operation.

•Includes root cause analysis, a specific technique used

to:
• Analyze a problem/situation
• Determine the underlying causes that lead to it
• Create preventive actions for similar problems
8.2 Perform Quality Assurance : Outputs
• Organizational Process Assets updates

• Change Requests : Corrective action ,

Preventive action , Defect repair

• Project Management Plan updates

 Quality management plan,
 Cost management plan.
 Schedule Management Plan

• Project Document updates

 Quality audits reports,
 Training plans ,Process Documentation
EVALUATING OVERALL PROJECT
PERFORMANCE REGULARLY IS PART O

A ) Quality management.

B ) Quality assurance.

C ) Quality planning.

D ) Quality control.
 8.3 Perform Quality Control
“ Inspecting work products/ deliverables to find defects
( not only the final product ) “
 The process of monitoring and controlling
results of executing the quality activities to
assess performance and recommend necessary
changes

 Quality control is performed throughout the

project

 PreventionKeeping errors out of the process

 InspectionKeeping errors out of the hand of

the customers
8.3 Perform Quality Control
8.3 Perform Quality Control: Inputs
1. Project Management Plan
 Quality Management Plan , Describes how quality control will be performed within the
project .
2. Quality Metrics :
 What and who you are going to measure your product’s quality .

3. Quality Checklists :
Use checklist to help you remember all of the things you include in your deliverables

4. Work Performance Measurements

Planned Vs. Actual schedule performance
Planned Vs. Actual cost performance
Planned Vs. Technical performance

5. Approved Change Requests

6. Deliverables
Any unique & verifiable products , result , capability to perform a service that must be
produced to complete a process , phase and project
7. Organizational Process Assets
Quality policy & standard , Defect reporting procedure
8.3 Perform Quality Control Tools & Techniques
Ishikawa’s Seven basic tools ( 1-7 )

1. Cause-and-Effect Diagram Or Ishikawa Diagram

The Fishbone diagram can also contain probabilities , Various factors
might be linked to potential problem

Time Material Machine Method

Major
defect

Effect
Energy Personnel Measurement Environment

Potential Causes
 A PROJECT MANAGER IS USING A CAUSE AND
EFFECT DIAGRAM WITH THE TEAM TO DETERMINE
HOW VARIOUS FACTORS MIGHT BE LINKED TO
POTENTIAL PROBLEMS. IN WHAT PART OF THE
QUALITY MANAGEMENT PROCESS IS THE PROJECT
MANAGER INVOLVED?

A ) Quality analysis.

B ) Perform quality assurance.

C ) Perform quality control.

D ) Plan quality.
WHICH OF THE FOLLOWING HELPS A PROJECT
MANAGER DETERMINE POSSIBLE CAUSES OF
POTENTIAL PROBLEMS AND ACTUAL PROBLEMS?

A ) The 50/50 rule.

B ) A fishbone diagram.

C ) A control chart.

D ) A Pareto chart .
8.3 Perform Quality Control Tools & Techniques
2. Histogram
Histogram is a vertical bar chart showing how often a particular
variable state occurred.
•Each column represents an attribute or characteristics of a problem/
situation.
•The height of each column represents the relative frequency of the
characteristics.
•Helps illustrate the most common cause of the problems in a process by
the number of and relative height of the bars.
8.3 Perform Quality Control Tools & Techniques
3. Pareto Chart
• Histogram that shows how many results were generated by type or
category
• Plots the number of defects (or other results) by the order of their
frequency
• Used to identify the important defects that need to be followed up

Pareto's Law
80% Of the problems are due to 20% the causes
 PARETO CHARTS HELPS THE PROJECT
MANAGER:

A ) Focus on the most critical issues to improve quality.

B ) Focus on stimulating thinking.

C ) Explore a desired future outcome.

D ) Determine if a process is out of control.

 8.3 Perform Quality Control
Tools & Techniques
4. Run Chart
• Similar to a control chart without displayed limits, a run chart shows the
history and pattern of variation.

Used in Trend analysis to monitor:

• Technical performance.
How many errors or defects have been
identified, and how many remain
uncorrected?

• Cost and schedule performance.

How many activities per period were
completed with significant variances ?
WHICH TOOL OR TECHNIQUE IS
USED TO ANALYZE TRENDS ?

A ) Scatter Chart .

B ) Run Chart.

C ) Checklist .

D ) Flow Chart .
8.3 Perform Quality Control Tools & Techniques
5. Scatter diagram
• A scatter diagram is a tool for
analyzing relationships between
two variables. One variable is
plotted on the horizontal axis and
the other is plotted on the vertical
axis
• Most often a scatter diagram is
used to prove or disprove cause-
and-effect relationships.

6. Flowcharting
The flowchart is a graphical
representation of a process
showing the relationship among
process steps .
8.3 Perform Quality Control Tools & Techniques

7. Control Charts

8. Inspection : Examination of work

( Reviews , Peer Reviews , Audits ,
Walkthrough ) .

9. Approved change requests review

10. Statistical Sampling

 WHICH OF THE FOLLOWING IS TRUE OF
INSPECTIONS?

A ) They may not be conducted by the project team.

B ) They test future desires of prospective customers.

C ) They can only be conducted on the final product.

D ) They prevent defective deliverables from reaching the

customer.
8.3 Perform Quality Control: Outputs
1. Quality Control Measurements : Documented results of
quality control activities

2. Validated Changes : Accepted / Rejected repaired items

3. Validated Deliverables : Determine the correctness of

deliverables and will be inputs to verify scope for formal
acceptance

4. Organizational Process Assets updates

 Lesson Learn Update
 Completed Checklists

5. Change Requests : Corrective action / Preventive action /

Defect repair

6. Project Management Plan updates

THANK YOU